Solaiman'S Views

Macroeconomic Context and Revenue Strategy The Bangladesh National Budget for the fiscal year 2026-27 (FY27) arrives amid persistent domestic and global economic headwinds, characterized by elevated inflation, declining household savings, and a fragile banking sector. 1 The budget is unprecedented in scale, totaling BDT 9.38 trillion, representing 13.7% of the projected Gross Domestic Product (GDP). 3 The government has set an ambitious GDP growth target of 6.5% and an inflation reduction target of 7.5%. 4 To finance this expansion, the fiscal framework relies on a historic total revenue target of BDT 6.95 trillion, equating to 10.2% of GDP. 2 The National Board of Revenue (NBR) is tasked with mobilizing the vast majority of this capital, carrying a target of BDT 6.04 trillion. 6 This leaves a budget deficit of BDT 2.43 trillion (3.6% of GDP), which the government intends to finance through heavy borrowing, including BDT 1.12 trillion directly from the domestic banking system. 3 T...